Roaring economy boosts scandal-dogged Najib’s fortunes


Prime Minister Najib Razak has defied his critics and appears to be strengthening his hold on Umno and his office, say observers. – The Malaysian Insight file pic, December 2, 2017.

A FAST-recovering economy could turn the tide for Prime Minister Najib Razak, who will go into next week’s Umno general assembly and the national polls to come with renewed confidence, said the South China Morning Post.

A Bloomberg News survey last week showed the Malaysian economy is likely to grow 5.7% this year and 5.2% next year, in contrast to a sub-five percent growth last year.

Najib, who has been dogged by the financial scandal of state investment arm 1Malaysia Development Bhd (1MDB) since 2015, has defied his critics and appears to be strengthening his hold on both his Malay party and the country’s leadership, say observers.

The Umno assembly will be the party’s last before the general election , which will pit Najib’s ruling Barisan Nasional coalition against  Pakatan Harapan, the opposition pact headed by his former mentor Dr Mahathir Mohamad.

Dr Mahathir has unceasingly called for Najib’s resignation over the 1MDB controversy, which is currently the subject of criminal investigation in the US, Singapore, and Switzerland.

But neither 1MDB nor Dr Mahathir’s attacks is likely to faze Najib as the five-day party assembly kicks off on Tuesday.

The 64-year-old Najib is expected to use the gathering of some 3,000 Umno delegates to fire the starting gun for the 14th general election, which must be called before August.

“We are all raring to go for the general election… this is the right opportunity to tell delegates and the electorate to believe in us and return us to power,” Umno Youth executive council member Rahman Hussin was quoted saying in the report.

Analysts say next week’s assembly will focus on shoring up Najib’s credibility.

“Umno leaders will drive home the point that the government has successfully steered the country through difficult times and that better times lie ahead,” said Saleena Begum Saleem, an associate fellow at Singapore’s S. Rajaratnam School of International Studies.

The Malaysian economy grew at the fastest pace in more than three years in the July-September quarter, and the ringgit has risen from a 19-year-low in January to become Asia’s second-best performing currency this year.

A pre-election budget announced in October meanwhile cut income tax for the middle class while forecasting the fiscal deficit to narrow to 2.8% of GDP from the current 3%.

Still, some within Umno itself are concerned that in spite of the glowing economy reports, many average Malaysians are saddled with rising living costs and a stagnating income.

Umno Youth’s Rahman said party leaders will not be let off the hook on the economy.

“Despite the strong economic performance, the grassroots still have some concerns, for example, over whether the average Joe is benefiting (from it),” he said.

Awang Azman Awang Pawi, a politics professor at the University of Malaya, said while rank-and-file Umno are likely to raise concerns about rising food and fuel costs, there will be no question of challenging Najib’s leadership.

“The general election is more important than party positions.

“There’s no point winning party elections if Umno loses in the general election, or doesn’t perform to expectations,” he said in the report. – December 2, 2017.


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